Artificial intelligence (AI) is becoming part of everyday business operations. You may already use AI tools to review resumes, track employee performance or help with hiring decisions. Some businesses also use these systems to support promotions and terminations.
These tools can save time and help you work through large amounts of data. However, using AI does not remove your duty to comply with employment laws.
How businesses are using AI in employment decisions
AI can help you review information more quickly and spot patterns that may affect staffing decisions. Common uses of these tools include:
- Screening and ranking job applicants
- Reviewing resumes for specific skills and experience
- Tracking employee productivity and attendance
- Measuring performance through data analysis
- Identifying employees for discipline or termination
- Forecasting staffing needs and employee turnover
These systems can process large amounts of data in a short time. As a result, many businesses use them to support tasks that would otherwise require more time and resources.
Why human oversight still matters
AI can process information quickly, but it does not exercise judgment in the same way a manager does. A system may miss relevant experience, overlook important circumstances or rely too heavily on numbers that do not tell the whole story.
For that reason, many employers use AI to support employment decisions rather than replace human judgment. Human review can provide context and help you assess information that automated systems may miss.
Why AI can create legal concerns for employers
AI can help you sort applications, identify trends and manage employee data. However, problems can arise when a tool affects certain applicants or employees differently because of the information it uses.
For example, a hiring program that favors candidates who resemble previous hires may disadvantage older applicants or people from different backgrounds. A monitoring tool may also fail to account for employees who need workplace accommodations.
Federal and Idaho laws prohibit discrimination based on characteristics such as age, race, sex, disability and religion. If an AI tool contributes to a decision that violates those laws, your business may still bear responsibility for the outcome.